SW Annuity

Often when you think you’re at the end of something, you’re at the beginning of something else.

Fred Rogers

Overview

Retirement may seem far away, but it is closer than you think, and it is never too early to plan.

Union Carpenters, Drywallers and Millwrights participate in the Southwest Carpenters Annuity when working under certain Labor Agreements in Nevada, Southern California, Arizona, Colorado, Washington, Oregon and Alaska.

The Southwest Carpenters Annuity is a Defined Contribution Retirement Plan.
- You are always 100% vested.
- All the money contributed and investment income belongs to you, the Participant.
You become a Participant in the Plan when the first contribution is made to the Plan by your employer.
Employer-Funded Contributions
- Contributions are made per man-hour worked based on the labor agreement you work under. The contribution amount is listed on your work referral.
- When you are working in an outside jurisdiction, you may request to have contributions made to other Carpenter Annuity or Defined Contribution plans transferred to the Southwest Carpenters Annuity Plan by submitting a Reciprocity Form to the Administrative Office.
- Contributions are tax-deferred (taxed upon distribution).
- You are not able to make contributions on your own behalf.

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Enrolling In the Plan

Enrollment is automatic with your first employer contribution to the fund.
Register with Empower Retirement after your first contribution to the plan (about 6 weeks after your first contributed work month).
Stay informed and manage your account:
- Verify your demographic information on MemberXG to receive all plan materials and investment information.
  - Date of Birth
  - Email Address
  - Mailing Address
  - Phone Number
  - Submit a change of address in Participant Information if necessary.
Notify the Administrative Office if you move so we can continue to send you information like statements and Plan amendments.
- Go to swcarpentersannuity.org to register with Empower Financial (the Plan's recordkeeper).
- MemberXG will display contributions made, but only Empower Retirement has a record of your balance, including investment income or losses.

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Your Investments

By registering with Empower Financial at swcarpentersannuity.org you will have up-to-date access to view your annuity account balances and to view or direct your investments.

Target Date Investment funds are selected automatically unless you make other choices.
- Target Date Funds are balanced based on the year you will turn 62.
- Make sure your correct date of birth is in MemberXG so the correct Target Date Fund is selected.
A variety of other investment options are offered if you choose to be a "hands-on" investor.
Like contributions, investment income is tax deferred (taxed at withdrawal).

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Accessing Your Annuity Fund

The balance in your Annuity belongs to you starting with the first contribution, but because this is a retirement account, your funds can only be withdrawn if certain events occur.

Retirement
Disability
Death
Termination as a participant – no contributions made for 12 consecutive months and not working in the construction industry in the Southwest Region.

Forms of Payment

Distributions are treated as taxable income.
- Lump sum distribution.
- Equal monthly payments.

When To Apply For Benefits

You may apply for your benefits at any time after you become eligible to receive a Plan benefit as described above.
Your beneficiary may apply following your death.
The first step in applying for your Annuity benefits is to request an application from the Administrative Office by calling (213) 386-8590 or (800) 293-1370.

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Forms Of Payment

In accordance with Federal Law, the Plan will automatically pay your benefits in one of the two automatic forms of payment described below, depending on your marital status when you receive your benefits. If you prefer, you and your spouse may reject this form of payment and elect one of the optional forms described below.

Married Participants

If you are married on the date your Individual Account becomes payable, the automatic form of payment will be a 50% joint and survivor annuity. This is required by Federal law.
The value of your Accumulated Share will be used to pay a fixed monthly benefit to you for your life, and, upon your death, 50% of such monthly benefit will be paid to your surviving spouse until your spouse's death.
You may reject it and elect to receive payment in one of the other optional forms of payment.
Your rejection must be in writing, contain the notarized signatures of you and your spouse, and be provided within 180 days after you and your spouse have been advised by the Trustees of the availability and effect of your rejection.
On the date your Individual Account becomes payable, only your spouse is eligible to receive benefits of a 50% joint and survivor annuity.

Unmarried Participants

If you are not married on the date your Individual Account becomes payable, the automatic form of payment will be a life annuity.
The value of your Accumulated Share will be used to pay a fixed monthly benefit to you for the term of your life; upon your death, no further benefit will be payable.
If you do not want this form of payment, you may reject it and elect to receive payment in one of the other optional forms.
Your rejection must be in writing, contain your notarized signature, and be provided within 180 days after you have been advised by the Trustees of the availability and effect of your rejection.

Irrevocable Form of Payment

Once payments commence, you may not change the form of the annuity. For example, if you take your Accumulated Share in the form of a 50% joint and survivor annuity, you may not change this form of payment once it begins.

Optional Forms of Payment

A lump sum payment (automatic, if the value of your account is less than or equal to $5,000.00).
Monthly installments not to exceed five years.
A combination of (i) and (ii).
75% joint and survivor annuity (only if married). The value of your account will be converted to monthly payments to you for your lifetime, and upon your death, 75% of such monthly payments will continue to your surviving spouse for the rest of their lifetime.

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Taxes

Federal Law requires that the Board provide you with a timely "Special Tax Notice Regarding Plan Payments," which describes your rights and obligations regarding rollovers and withholding requirements.

Mandatory 20% Withholding.

Whenever you receive a distribution from the Plan, other than periodic annuity payments or installment payments of 10 years or more, and you have not made a direct rollover to an individual retirement account ("IRA"), annuity, or an eligible retirement plan, the Internal Revenue Service requires the Plan to withhold 20 percent of the taxable amount to be credited to any future income tax you may owe.
This amount will automatically be deducted from the amount paid to you.

10% Additional Penalty Tax.

Any payment of taxable money from your account is generally subject to an additional 10 percent federal tax penalty if you receive "early" distribution. For example, if you receive a distribution prior to age 59½.
Always consult a qualified tax advisor for your specific situation.

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Payment Upon Death

If you should die before receiving payment of your Accumulated Share, your Accumulated Share will be paid as follows:

Married Participants

If you have been married throughout the one-year period ending on the date of your death, the automatic form of payment will be a life annuity for your surviving spouse.
The value of your Accumulated Share will be used to purchase a life annuity from a legal reserve life insurance company that will pay a fixed monthly benefit to your spouse for his/her lifetime, with all payments ending on his/her death.
Your surviving spouse may reject the life annuity and elect to receive a lump sum payment.
Your surviving spouse's rejection must be in writing, contain the notarized signature of your spouse, and be provided within 180 days after your spouse has been advised by the Trustees of the availability and effect of his or her rejection.

Unmarried Participants

If you have not been married throughout the one-year period ending on the date of your death, the automatic form of payment is a single lump-sum payment to your designated beneficiary or beneficiaries.

Beneficiary

In order to ensure that your Accumulated Share is paid to the person that you want to receive it, be sure to file a beneficiary designation with the Administrative Office and keep it up to date.
If you are married, your spouse must consent in writing to the designation of a beneficiary other than your spouse.
If you fail to designate a beneficiary, your Accumulated Share will be paid to your next of kin in the following order of priority:
- Surviving spouse, or if none;
- Surviving children, in equal shares, or if none;
- Surviving parents, in equal shares.

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Divorce Decree/Domestic Relations Orders

You must promptly notify the Administrative Office of your divorce and provide a complete copy of the divorce decree and all property settlement pages.
Update your beneficiary designation after your divorce is finalized.
The Plan must recognize any Qualified Domestic Relations Order ("QDRO") and make payments as directed by the QDRO to your spouse, former spouse, child, or other dependent (called an "alternate payee") who is specified by the QDRO. A QDRO is a state domestic relations order, such as a divorce decree, that creates or recognizes an alternate payee's right to receive all or a portion of the benefits payable to you under the Plan.
The Trustees have adopted formal procedures for the treatment of domestic relations orders received by the Plan.

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